Sunkar receives big pay day

Sunkar Resources said it had received the first chunk of its payment for work on a new railway line in Kazakhstan.

Last week the firm announced its subsidiary, Temir Service, had signed an earth moving contract for the new railway line.

The contract is worth KZT1.2bn - around $8.1m - and the company has now received its first payment, equivalent to 30% of the contract.

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The prepayment of KZT 361m, is worth around $2.4m at current exchange rates.

The work is scheduled to be completed during the second quarter of 2013 and the company expects the revenue to make a significant contribution to the working capital of the company.

Sunkar is hopeful the deal will mean it can retain core qualified personnel for next year's mining season.

MM